Mamaearth‘s parent company, Honasa Consumer Ltd, saw a nearly 4% drop in its shares during early trading on Tuesday (June 11) due to a significant block deal in the stock.
The shares commenced trading at INR 440.60 each, down from the previous close of INR 457.70. By 10:00 AM on Tuesday, they were trading at INR 441.35.
Block Deal Details
Exchange data reveals that 66.2 lakh shares, equivalent to 2% of the equity, were transacted in a block deal. The shares were traded at an average price of INR 439 each.
This deal is estimated to be worth around INR 291 crore. Currently, the identities of the buyers and sellers participating in the transaction remain undisclosed.
However, according to a CNBC-TV18 report, it is likely that Fireside Ventures and Sofina Ventures were the sellers involved in the deal.
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Fireside Ventures and Sofina Ventures aimed to offload up to a 2% stake in Mamaearth’s parent company via a block deal, with a goal of generating earnings amounting to INR 273.2 crore.
The block deal’s floor price was established at INR 421.3 per share, representing an 8% discount compared to Honasa’s closing price on Monday.
According to the shareholding pattern for the March quarter, Fireside Ventures owned a 5.28% stake in the company, whereas Sofina Ventures held a 6.16% stake.
Established in 2016 by husband-wife duo Varun and Ghazal Alagh, Honasa’s product portfolio includes six beauty and personal care brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s.
Financial Performance of Honasa Consumer Ltd
The parent company of the direct-to-consumer brand Mamaearth, Honasa Consumer Ltd, recorded a consolidated net profit of INR 30.47 crore in the fourth quarter of the fiscal year 2023-24 (FY24).
In the fourth quarter of FY24, Honasa witnessed a remarkable 21% year-on-year surge in operating revenue, reaching INR 471.09 crore compared to INR 387.8 crore in the corresponding period last year. However, this represented a 3% sequential decrease from the operational revenue of INR 488.2 crore in Q3 FY24.
In the fiscal year FY24, the startup recorded profits of INR 110.52 crore, a significant turnaround from the loss of INR 150.96 crore incurred in the previous fiscal. Honasa also experienced a 30% increase in operating revenue for the fiscal, reaching INR 1,919.6 crore compared to INR 1,492.7 crore.
Continue Exploring: Mamaearth parent Honasa Consumer achieves profitability for full fiscal year FY24